Posts Tagged ‘SHW’

Heavy Trading In Intel Options As Shares Dip After Earnings

Today’s tickers: INTC, SHW & JRCC

INTC - Intel Corp. – Shares in Intel are trading lower on Thursday, down as much as 3.7% in the early going to $23.25, after the world’s largest maker of semiconductors reported lower than expected second-quarter earnings and sales and said third-quarter revenue may come in lower than analyst estimates. Options on INTC are changing hands at a clip today, with volume approaching 115,000 contracts as of 11:45 a.m. ET versus average daily volume of around 128,000 contracts. Trading in Intel puts is outpacing that of calls, with the put/call ratio hovering near 1.7 as of the time of this writing. Fresh interest in October expiry put options today suggests one trader is bracing for the price of the underlying to potentially drop substantially during the next few months. More than 15,000 put options traded at the Oct $20 strike during the first hour of the trading session versus open interest of 9,296 contracts. The put options appear to have been purchased for an average premium of $0.26 apiece. The bearish position makes money at expiration should shares in Intel plunge 15% from the current price of $23.30 to breach the average breakeven point on the downside at $19.74. Shares in Intel last traded below $19.74 in December.

SHW - Sherwin-Williams Co. – Options are more active than usual on paint retailer Sherwin-Williams Co. today with shares in the name down more than 10% to $163.63 at the open after the company reported lower than expected second-quarter earnings prior to the opening bell and after antitrust regulators in Mexico voted to block the company’s takeover of Mexico City-based, Consorcio Comex SA de CV. Shares in Sherwin-Williams dipped to the lowest level since April at the start of the session, but some options traders appear to be positioning for…
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Butterfly Spread Calls For Target Rally

    Today’s tickers: TGT, ALTR, BCSI & SHW

TGT - Target Corp. – Post-earnings options trading on Target this morning appears to be littered with profit-taking and fresh bullish positioning, among other strategies. Shares in the Minneapolis, MN-based retailer jumped 5.85% to an intraday high of $52.26 after the company posted better-than-expected second-quarter profits. The sharp rally in TGT shares has cooled somewhat, but the stock still stands 2.65% higher on the day at $50.68 as of 11:50 am in New York. In- and out-of-the-money call selling in the front month may be the work of traders taking profits off the table. It looks like investors sold more than 2,400 now in-the-money calls at the August $50 strike for an average premium of $1.94 this morning, and shed another 3,700 calls at an average premium of $0.34 each up at the August $52.5 strike. Substantial open interest in excess of 14,500 calls at each strike indicates traders could be selling-to-close positions. Alternatively, investors may be engaging other strategies such as covered call selling, or outright call selling ahead of expiration on the view that the options will expire worthless or nearly worthless on Friday as time erosion accelerates.

Longer-term activity in Target options suggests one strategist sees shares in the second-largest U.S. discount retailer soaring ahead of January 2012 expiration. It appears the bullish player purchased a call butterfly spread, buying 1,700 calls at the Jan. 2012 $57.5 strike, selling 3,400 calls at the $60 strike, and purchasing 1,700 calls up at the $62.5 strike, all at a net premium of $0.27 per contract. The butterfly spread positions the trader to make money should Target’s shares surge 14.0% in the next six months to surpass the effective breakeven price of $57.77 by January expiration day. Maximum potential profits of $2.23 per contract pad the investor’s wallet in the event that shares jump 18.4% over the current price of $50.68 to settle at $60.00 at expiration next year. The strategy selected greatly reduces premium required to…
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Tempur-Pedic Options Pop as Shares Hit New All-Time High

Today’s tickers: TPX, SHW, AHD & AU

TPX - Tempur-Pedic International, Inc. – The maker of premium mattresses and pillows popped up on our scanners at the start of the trading session with options activity that’s anything but sleepy. Shares in Tempur-Pedic International jumped 17.6% this morning to secure an intraday- and new all-time high of $59.98 after the company raised its full-year guidance and said it expects to report strong first-quarter results in its announcement after the close on April 20, 2010. The company is expecting to earn $2.80 to $2.95 a share on sales of $1.31 to $1.36 billion for the full year, which is far greater than the average analyst estimate of $2.72 a share on revenue of $1.26 billion. Fresh bullish positions were initiated at the April $60 strike, where more than 2,200 calls changed hands on previously existing open interest of just 8 contracts. It looks like the majority of these calls were purchased for an average premium of $0.50 a-pop, which positions buyers of the contracts to profit above an average breakeven price of $60.50 through expiration next Friday. Investors picked up another 255 calls at the higher April $65 strike for an average premium of $0.10 each. Open interest patterns in the front month suggest some options traders established bullish stances on Tempur-Pedic well in advance of today’s sharp rally in shares. It looks like traders picked up around 630 calls at the April $50 strike for an average premium of $1.64 each back on March 16, 2011. These now deep-in-the-money calls tout an asking price of $9.00 each as of 11:30am in New York. Just one week ago, on April 1, open interest in calls at the April $55 strike suggests some 1,400 call options were purchased for an average premium of $0.15 each. Investors looking to buy those same calls today face an asking price of $4.00 per contract. Analysts at Piper Jaffray reportedly raised their share price target on TPX to $68 from…
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Homebuilders ETF Bull Ditches Massive Call Position in the Nick of Time

Today’s tickers: XHB, XLV, SHW, CSCO, AMR, DD & FRX

XHB – SPDR S&P Homebuilders ETF – It looks like one big options player threw in the towel on a massive bullish stance involving XHB call contracts today as shares of the underlying fund surrendered 2% to stand at $17.31 as of 1:00 pm (ET). The investor appears to have purchased roughly 50,000 calls at the January 2011 $22.5 strike for an average premium of $0.60 apiece back on April 22, 2010, when shares of the fund were trading at a volume-weighted average price of $19.04. Just four days after the purchase of the call contracts, the homebuilders fund’s share price touched a new 52-week high of $20.00. With the benefit of hindsight, it’s clear the trader would have been better off ditching the calls back on April 26, 2010. However, it seems the investor decided to sell the calls today – perhaps fearing the fund’s shares are only heading lower – for an average premium of $0.66 apiece to take in average net profits of $0.06 per contract. Again, with our hindsight coming in at a perfect 20/20, the trader made the right decision to sell the calls this morning because shares of the XHB are now down 3.1% to $17.11 as of 1:15 pm (ET), and the calls may now be sold for just $0.57 per contract. Waiting just a couple of hours more to sell the calls today would have resulted in a net loss rather than a net gain to the trader.

XLV – Health Care Select Sector SPDR Fund – Shares of the XLV, an exchange-traded fund that tracks the price and yield performance of the Health Care Select Sector of the S&P 500 Index, are trading 0.90% lower at $29.85 as of 12:35 pm (ET). Options traders populating the fund today are mostly placing bearish bets that shares of the underlying fund are set to decline ahead of May expiration. However, there was some notable contrarian activity in May contract calls, as well. Pessimistic players bracing for continued share price erosion picked up roughly 5,400 puts at the now in-the-money May $30 strike for an average premium of $0.56 apiece. Put buyers at this strike price make money if the XLV’s share price slips beneath the average breakeven point to the downside at $29.44 by expiration day. Buying interest continued at the more bearish…
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Tenet Healthcare Receives Bullish Three-Legged Options Combo Play

Today’s tickers: THC, F, TIVO, HIG, LVS, XME, AET & SHW

THC – Tenet Healthcare Corp. – Shares of the provider of health care services surged 9.39% today to $6.29 following the passage of health-care reform legislation through the U.S. House of Representatives. Intriguing bullish options trading transpired on Tenet Healthcare during the current session as investors secured positions that yield profits if the firm’s shares continue to appreciate through expiration in January 2011. One optimistic player enacted a three-leg options combination play by selling short put options to partially finance the purchase of a debit call spread. The investor picked up 10,000 calls at the January 2011 $7.5 strike for a premium of $0.65 apiece, and sold 10,000 calls at the higher January 2011 $10 strike for $0.10 each. Next, the trader shed 10,000 puts at the January 2011 $5.0 strike for $0.55 premium apiece. The investor’s combination play was essentially enacted at zero cost because of the financing provided by the sale of higher-strike calls and out-of-the-money put options. Maximum potential profits of $2.50 per contract are available to the Tenet-bull if shares of the underlying stock jump 59% from the current price to $10.00 by expiration next year. The short position in put options implies the trader is willing to have Tenet’s shares put to him at $5.00 each should the put contracts land in-the-money ahead of expiration day in January. Options implied volatility on the stock slumped 20.9% this afternoon to 46.67% following the passage of the health care bill in the House.

F – Ford Motor Co. – Bullish options activity on the automobile manufacturer picked up as the trading day progressed amid a 4.5% rally in the price of the underlying stock to $13.90. One optimistic individual initiated a bullish risk reversal transaction in the June contract to position for continued upward momentum in the price of Ford’s shares through expiration. The investor sold 5,000 puts at the June $10 strike for a premium of $0.23 per contract in order to partially offset the cost of buying the same number of call options at the higher June $16 strike for $0.44 apiece. The net cost of the reversal play amounts to $0.21 per contract. Thus, the investor responsible for the trade stands ready to accrue profits if Ford’s shares surge 16.60% over the current price to surpass the breakeven point at $16.21 by expiration…
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Thursday Morning

Is today the day we break the pattern?

I predicted a wild week on Monday morning and we have been having a fabulous time as it only took me until 12:51 on Monday afternoon to point out to members that we were following a virtually identical pattern to the previous week.   That enabled us to anticipate the gap down on Tuesday morning, as well as yesterday’s stick save.  In fact, I predicted the Dow would close at 8,050 and missed it by 7 points.  Our short plays that day were MA (which we cashed in yesterday with a huge gain), BIDU and FSLR.  The last two are still trading up and I really like BIDU as a proxy for a possible disappointment from GOOG this evening.  Also, we got a downward revision to China’s GDP today to "just" 6.1% growth

I often say to members "We don’t care if the markets are fixed, as long as we know HOW they are fixed" and yesterday was a great example of that as we digested the Beige Book report and, at 2:53, with the S&P spiking down to 839, I was able to post a reminder "20 minutes until stick save" and put up a trade idea for the FAS $6 calls at $2.15 (because they had almost no premium), which closed out at $2.90 an hour later (up 34%). 

We did not, however, change our overall cover stance at the close of 55% bearish.  I would have been more bullish if we had NOT moved past 848 on the S&P, there was a sort of frenzied overkill to the "rally" that made me think we would not get the follow-through that we got last Thursday.  Also, we had to take into consideration that last Thursday closed the week so we have an extra day (and it’s options expiration day!) to play with so, as I said to members in yesterday’s chat, it pays to error on the side of caution – just in case.

Today we have the usual 650,000 people losing their jobs (yawn) along with anemic Building Permits and Housing Starts (550K each expected) and the Philly Fed at 10 am.  The Philly Fed is our biggest worry as it is almost certain to be worse than the -32 expected because it says right in yesterday’s Beige Book: "Third District manufacturers reported further declines in shipments and new orders, on balance, from
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Phil's Favorites

Facebook begins to shift from being a free and open platform into a responsible public utility

 

Facebook begins to shift from being a free and open platform into a responsible public utility

Facebook CEO Mark Zuckerberg prepares to testify on Capitol Hill. AP Photo/Andrew Harnik

Courtesy of Anjana Susarla, Michigan State University

When Facebook recently removed several accounts for trying to influence the 2018 midterm elections, it was the company’s latest move acknowledging the ...



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Zero Hedge

Death Of A Nation: Drug Overdose Deaths Jump To Record 72,000 Last Year

Courtesy of ZeroHedge. View original post here.

The Centers for Disease Control (CDC) estimates drug overdose deaths based on a current flow of mortality data from the National Vital Statistics System has just reached a record of 71,568 Americans in 2017. That is a 6.6 percent jump in overdose deaths over 2016 and represents a rapid deterioration of America’s inner core: The middle class.

More than 40,000 Americans...



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Digital Currencies

Bitcoin's rollercoaster ride reflects the biggest issue facing cryptocurrencies: regulation

 

Bitcoin's rollercoaster ride reflects the biggest issue facing cryptocurrencies: regulation

Shutterstock

Courtesy of Brian Lucey, Trinity College Dublin and Shaen Corbet, Dublin City University

The rollercoaster of cryptocurrency pricing is on the downward slope again. Bitcoin has fallen by a quarter in the past month, with other...



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ValueWalk

The Top 10 Wildest Campaigns Of 2018: Starboard's Stake In Symantec

By ActivistInsight. Originally published at ValueWalk.

This week’s column is a continuation of our 10 “wildest campaigns” of 2018. Find the first part here.

Q2 hedge fund letters, conference, scoops etc

Free-Photos / PixabayTop 10 Wildest Campaigns Of 2018

5. How often does an activist win a proxy contest without support from either of the two main proxy advisory firms? (...



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Kimble Charting Solutions

Small Caps attempting 20-year breakout, says Joe Friday

Courtesy of Chris Kimble.

CLICK ON CHART TO ENLARGE

The Russell 2000 trend remains solidly higher, as it has created a series of higher lows and higher highs inside of rising channel (1) over the past 25-years.

Small caps have been an upside leader in 2018, as they are very near all-time highs.

We applied Fibonacci extension levels to the 2007 highs and 2009 lows at each (2).

Joe Friday Just The Facts Ma’am- Small caps are attempting a dual breakout at (3). 

This is a price point that small-cap bulls would LOVE to see strength and a breakout take place, as monthly momentum is lofty.

...

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Insider Scoop

Walmart Posts Standout Quarter, But Raymond James Downgrades On Flipkart Costs

Courtesy of Benzinga.

Related WMT 10 Biggest Price Target Changes For Friday Headlights On Deere: Mixed Results As Company Cites H...

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Biotech

Nanomedicine could revolutionise the way we treat TB. Here's how

Reminder: Pharmboy and Ilene are available to chat with Members, comments are found below each post.

 

Nanomedicine could revolutionise the way we treat TB. Here's how

Nanomedicine could scupper the need for TB patients to take multiple daily tablets with toxic side effects. Daniel Irungu/EPA

Courtesy of Sarah D'Souza, University of the Western Cape and Admire Dube, University of the Western Cape

Tuberculosis is one of the world’s ...



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Chart School

Bitcoin Update - 6000 is support

Courtesy of Read the Ticker.

Demand shows it hand at support levels, well it obvious that $6000 BTCUSD is support so far.

More from RTT Tv , Ref: Brazil bitcoin currency , Brazil New Accounts
 


 

Main Chart in video



 

Sure fundamentals...



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Members' Corner

There Are 3 Main Theories That Explain Trump's Approach to Putin and Russia-Which One Makes the Most Sense?

What do you think?

Thom Hartmann suggests that the "Manchurian Candidate theory" is the least likely explanation for Trump's pro-Russia behavior in "There Are 3 Main Theories That Explain Trump’s Approach to Putin and Russia—Which One Makes the Most Sense?" (below).  disagrees and suggests that Putin probably has "the goods" on Trump in "Trump’s Plot Against America". (To be fair, Hartmann acknowledges that his three theories are not mutually exclusive.) Jonathan Chait argues ...



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Mapping The Market

Mistakes were Made. (And, Yes, by Me.)

Via Jean-Luc:

Famed investor reflecting on his mistakes:

Mistakes were Made. (And, Yes, by Me.)

One that stands out for me:

Instead of focusing on how value factors in general did in identifying attractive stocks, I rushed to proclaim price-to-sales the winner. That was, until it wasn’t. I guess there’s a reason for the proclamation “The king is dead, long live the king” when a monarchy changes hands. As we continued to update the book, price-to-sales was no longer the “best” single value factor, replaced by others, depending upon the time frames examined. I had also become a lot more sophisticated in my analysis—thanks to criticism of my earlier work—and realized that everything, including factors, moves in and out of favor, depending upon the market environment. I also realized...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

...

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All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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